Hello. this is Mike again and during this troubling time with coronavirus and the oil crash, oil prices are low and the oil forecast is bearish for now. I have come across some information that might be beneficial to you and others. I am NOT an investment professional, but I do seen some thing that should be pointed out. Just doing a short Q&A format, with some links and a video you can look at, just my thoughts on the situation.
What is going on in the oil market?
Basically, because of the Covid 19 virus, people are staying home and not traveling as much, business are closed, people are working less, millions are unemployed or on lay-offs. So with the massive amount of cars not being on the road, You can guess that the supply of oil has gone threw the roof! and Prices have crased.
How is it affecting Oil stocks?
I think…and from what I see most oil stock are going low as well. Like the oil retailers, gas stations, refineries. I read an article that price of wholesale gas was 12 cents in the midwest. So you would think that with prices so low, People would be filling up on gas at the gas stations…but sadly most are not, because of the overall situation.
Is there a way the make money from this situation?
My honest opinion…I really do not know…You can’t really make quick money from the market if you are buying, maybe if you do some put options…on the USO or some of the major player in the market, since oil prices are going down and the oil prices forecast seems to be bearish, very bearish. You can always short the airlines stock as well, gas station stocks, retailers stocks…relating to clothing and the like.
Is there any Sub-sector of the Oil business that is making money?
Yes…there seems to be..I just watched a video by This Guy Accroding to him…He has put over 30K into one stock…A Oil storage company called Nordic American Tanker and a few other similar companies. But my question is how long will the need for storage last?? According to some sources, room for oil is running out, forcing oil storage companies to increase the storage rates for large companies…Like this article states…but as the major refineries and production decreases…so will the need to store the oil. I am not an expert or anything like that, but that’s just my thoughts on the situation. I still think investing is overall risky and I really hate losing money, specially in the stock market, but this sector of the oil industry might have legs for a while, therefore, I think I will check it out. With over 40 million people out of work (I really don’t know the numbers), this translates into billions of gallons of oil not being used for anything, cars not being on the road, planes not leaving the runway, etc, etc. Not only in American but WORLDWIDE…..Wow! what far-reaching impact this virus has had.
Will oil prices rally again to the $40-$50 mark?
I think eventually it will but…How long I really don’t know..some experts are forecasting that the virus will be back in the winter..and even STRONGER! So expert are saying the lock down could last for over 18 months. Hell I saw an article today stating that oil will go back to $100+..Plus Trump is starting stuff with Iran again Sooo…well we will see. But really, this might take a few years to recover completly and I think Trump is making a silly move. I hope sinister forces have not gotten access to his big head, like Anakin Skywalker or something like that. Of course you know it could be devastating for our country to enter another stupid war, but you know anything can happen with this president
Do you think business in American will recover completely from the virus and this oil crash?
Yes and no..I think Some business will close for good. Some business will have to downsize to pay off debts and the like. Some business will surprisingly flourish and make money, grow and the like. A good chunk of business were already on edge before this virus hit and now they are down for the count..out cold and it’s a tragic to witness this in our country, but on the other hand, I have seen regular, average people come up with ideas and are making a good chunk of change..like some people are actually making homemade mask, selling them on ebay, amazon, facebook and the like. It’s people like them that are making a way forward in this time of crisis, but I think we are headed toward a major recession and even a mild depression, and I could be wrong.. This might end in a hyper inflationary DEPRESSION, and if that happens, the amount of suffering will be near apocalyptic. So let’s pray that this is not the case, but for every crisis there is opportunity. I have also seen numerous advertisements promoting mask-type product poping up here and there. People are also taking advantage of the swings the the market (stock market), but it’s a little to much for me, to have the SPY (S&P 500) go up 500 points one day, then down 700 the next.
Ok enougth ranting..So..What are you really saying?
Well…Is it worth investing company mentioned in the video: Why I Just Put $30,000 into this Oil Tanker Stock! Big ROI OPP suggest?, I think I might give it shot, BUT with money, I can afford to LOSE. That’s the way I am thinking right now. You and I know that 30K is a huge amount for the average joe, but hey this guy seem confident, so I guess he is fine with it. How about you…Leave your messages below if you have any thoughts this economy, oil prices, stocks, etc